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Tag: State Owned Enterprise (SOE)

SONA – the SOE elephant in the room!

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One of the elephants in the room at this year’s State of the Nation Address (SONA) was the conspicuous absence of any mention of the need to appoint the right people to the boards of state-owned enterprises (SOEs).

Selecting the wrong directors for the SOE and SOC boards has...

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As most South Africans eagerly awaited some reprieve from a year of constant and negative bombardment, be this over matters such as a massively contracted economy, rising unemployment, state capture, rising corruption and the threat of expropriation of property without compensation, many had hoped to return from their annual vacation rested, and hopeful to hear some positive news. This did not happen.

South African State of the Nation Address 2020

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South African President Cyril Ramaphosa delivers the 26th State of the Nation address – full text.

What an Affirmative SONA speech would forespell

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Tonight President Cyril Ramaphosa will rise in Parliament to review the current State of the Nation, and to indicate what he will be doing over the next 12 months to steer South Africa through the very troubling waters the country is currently in.

We need less, not more, government intervention in the economy

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Government intervention in the economy simply does not work. It is a mystery, then, why so many otherwise intelligent people keep calling for more of the same. After years of low growth (12 years now) concurrent with government fiscal deficits and various stimulus packages, we are now faced with retrenchments across the economy. The latest of which is Massmart announcing that it is considering retrenching 1,400 people.

Are ACSA Board directors liable under the Companies Act 2011?

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Airports Company South Africa (ACSA) directors should reread the personal liability sections in S45 in the Companies Act 2008 (the Act) before extending any further largesse to SA Express Airways (SAX).

Mboweni sends the right signal?

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Finance minister Tito Mboweni’s new economic strategy paper is a refreshing, much needed breath of fresh air for an economy struggling for oxygen. The paper is replete with common sense proposals all aimed at achieving the economic growth South Africa desperately needs. We have been stumbling along a low-growth path of high taxes, kilometres of red-tape, wealth redistribution, and anti-individualism for far too long. If Mboweni’s paper can be taken as a true step in a new direction, a direction of more individual freedom, South Africa will see green shoots of recovery almost immediately.

SOE board appointments – who and how matters!

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Chief Justice Mogoeng Mogoeng, during his address at The Directors Event in Sandton, highlighted the issue of board and other leadership appointments in the public sector.

Prescribed Assets – the bad, not so bad and great

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The ANC’s 2019 manifesto refers to investigating prescribed assets, which are defined as the proportion of financial institutions’ resources that would be assigned to socially productive assets as a key priority. Prescribed assets are mentioned under the two sections in the 2019 manifesto. Both mentions refer to investigation and that no detail has been provided about the form that the prescription could take.

GDP growth – has the time has come to abandon fiscal...

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The latest GDP numbers show that the South African economy declined by 3.2% for the first quarter of 2019. This comes after President Ramaphosa announced a R50 billion stimulus package in September 2018. Since that stimulus followed on a decade of stimulus spending instituted since the 2008 global economic crisis, we must now ask whether Minister Pravin Gordhan’s decision to choose stimulus over austerity was the right one.

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